Hatton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hatton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hatton you would be well advised to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Hatton leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you enhanced control over the value of your Hatton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a studio apartment in Hatton being sold with a lease of a little over 59 years unexpired. Sebastian on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were phoned by Ms J Brown who, having bought a studio flat in Hatton in November 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Hatton with an extended lease were valued about £225,800. The average ground rent payable was £60 collected annually. The lease termination date was on 9 January 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus costs.
An example of a Lease Extension case for a Hatton property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired residue of the current lease was 82.93 years.